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Which of the following is true with regard to CMOS? The CMO issuers (like FNMA) bear all prepayment risks. It is a multi-class pass-through securities.

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Which of the following is true with regard to CMOS? The CMO issuers (like FNMA) bear all prepayment risks. It is a multi-class pass-through securities. All classes bear same prepayment risk. The lowest class of CMO offers the highest expected return to investors. The higher class of CMOs represent equity ownership of the mortgage pool

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